Proposal: Aave Risk DAO

I would like to apply to become a member of the Aave Risk DAO. I bring extensive professional experience in quantitative risk. My main focus area would be the on-chain/off-chain risks of upcoming Real world assets: credit, market, liquidity, operational, regulatory and liquidation risks.

Background

I am a senior risk analytics professional and data consultant with extensive hands-on experience in both banking quantitative risk functions and Blockchain, spanning startups and DeFi projects.

I’ve held senior quantitative analytics roles with exposure to modelling retail, SMEs and corporate credit risk for some of the biggest Australian banking groups, including Commonwealth Bank and Westpac. Modelling experiences include development of application, behaviour scorecards and risk-based pricing for origination, collections and account management strategies, as well as their production implementation through automated decisioning software. I’ve developed risk and pricing frameworks for corporate lending and securitised assets (asset-backed securities). Lately, I’ve been working with clients in top tier banking groups on automated data governance and regulation. Experience with regulation includes consultancy on risk frameworks relating to securities, capital adequacy, capital provision and liquidity requirements (Basel III, IV and IFRS9) across the banking sector.

Since 2016 I have worked on a variety of projects in the Blockchain world in software engineering (smart contract auditing), blockchain architecture and involvement in quantitative Risk in DeFi. My experience has been mostly with Ethereum and EVM projects. On smart contract & low-level engineering advisory I’ve worked with clients such as Shapeshift, Brave New Coin, tZero, Leverj, Kyber and Ripio Credit Network. In Risk, I’ve been working with the MakerDAO community since 2019 (SCD), initially as a community contributor then as part of the crypto native team. I’ve provided risk assessments, modelling and improvements to the risk framework to a number of collaterals onboarded into MCD. In 2020, I actively contributed to the creation of the MakerDAO RWA Risk team that set up the risk framework to onboard the first Centrifuge assets into the Maker protocol. Right now, I am building robust and asset class specific quantitative frameworks, simulations and automated performance monitoring for both Centrifuge and off-chain RWAs.

I’ve developed software engineering and data science skills through my working experiences across technology and risk analytics teams.

Experience

Banking and fintech:

  • Senior Risk Analytics - Retail, SME, Corporate
  • Analytics Product Owner - Big Data and Automated Credit Decisioning
  • Software Team Lead - Bank-wide data governance & data lineage (SQL and Big Data)
  • Regulatory Risk Consultant - Basel III, IV, IFRS9

DeFi and crypto

  • Technical BA/Data Analyst in smart contract auditing and advisory - BlockchainLabs
  • Quantitative Risk Contributor - MakerDAO (Cryptonative)
  • Co-founder RWA Risk - MakerDAO (Centrifuge & other)
  • Risk Lead for Regulated Index in Enzyme (WIP)

Skills

  • Programming/Scripting: SQL, Python, R, bash, Solidity, Vyper
  • Stats: Supervised and unsupervised ML, PD modelling, Provision modelling, Market Risk modelling
  • Databases: postgreSQL, MySQL, MSSQL Server, Oracle, Apache Hive, BigQuery
  • DataViz: pandas, matplotlib, seaborn, plotly, Data Studio, PowerBI

Commitment

I can commit approximately 10 hours per week.

7 Likes

I’m interested in playing a part in this DAO if there’s room for me. I have a BA in Statistics, am pursuing a MS in Data Science, and have three years of experience working as a Statistician. I am familiar with many insurance and financial concepts after studying to be an actuary for a few years, though I can’t hope to compete with the giants above me. I have basic Solidity experience, as well as experience in most common data frameworks like SQL, R, Python, Spark, as well as machine learning and deep learning experience.

I follow the defi landscape closely and can comfortably describe the tokenomics and business model of most of the tokens available on AAVE, as well as provide an opinion on the risk with the tokens. I believe a productive DAO will have a culture of transparency and healthy debate, and will do my best to contribute in that regard.

Other than what I’ve stated, I don’t have much of a history to go off of. Here is an example of the type of things I have to say when it comes to risk. I can commit 10 hours per week.

5 Likes

Interested in contributing!

PREVIOUS ROLES

~15 years in business operations with Fortune 100 companies (BBY, MSFT) and most recently, an international real-estate venture
~5 years in finance operations, P&L management

I recently decided to leave my senior operations management role to pursue involvement in crypto full-time, with an emphasis on Ethereum-based DeFi protocols.

CRYPTO EXPOSURE

~5 years of participation in various capacities in Bitcoin & Ethereum ecosystems (mining, investment, advocacy)
Familiarity & involvement with major DeFi protocols

I’m flexible in terms of time commitments, as needs arise.

I’d like to note that I prefer to remain pseudonymous–I agree with Balaji’s perspective on the need to normalize this in crypto as well as more traditional spaces–but can validate identity & skill-sets privately.

Regardless of whether my background & skills are a match for the DAO, I believe it’ll bring real value to AAVE’s growth path, and I’ll be following it closely.

3 Likes

Speaking on behalf of Blockchain@Berkeley:

Describe your/the experts’ involvement in the Aave ecosystem and in the space more generally:

Blockchain@Berkeley (B@B) is and has been one of the most active student organizations in the Ethereum and DeFi community, paving the road for what leading blockchain student organizations look like since 2017. We’ve been actively involved in DeFi governance since December of 2020 and for nearly a year, B@B has reviewed and voted on proposals for some of the top DeFi protocols such as Aave, Compound, and Uniswap. B@B is aiming to become a significant community member in DeFi and joining Aave’s Risk DAO would be a huge step toward that goal. Over the past year alone, our education department has leveraged dedicated research projects to further understand and analyze the mechanics of DeFi and create models that can be used to better evaluate DeFi markets. One such long-term project ‘Stable Sims’ enabled a simulation of the Maker Protocol using different liquidation mechanics and stress-tests of these mechanisms under various market conditions.

What skills/experience do you/they bring?

B@B is made up of nearly 60 driven & passionate students with a breakdown of roughly 60% developers, the remaining 40% is made up of business development experts, designers, and education members. Our developers would likely be our biggest value add to the Risk DAO. Not only do all our developers do a 120 hour Web3.0 development course covering Solidity, React, and MongoDB but they are also deeply passionate and involved in the Blockchain community outside of B@B with many interning at different DeFi and Web3 companies over the summer. We believe that by participating in the Aave Risk DAO we can advance our skills and rise to meet any potential challenges while pushing the Aave protocol forward.

Can you commit ~5-10 hours a week?

Since B@B is a relatively large organization and with a dedicated governance team. 5-10 hours per week will be easily manageable and we’re excited to do so!

4 Likes

Hi! asdpc.eth here speaking in behalf of Witnet Foundation.

Witnet Foundation is a non-profit originally dedicated to stewarding the advancement of the Witnet oracle protocol and ecosystem.

We see oracles and price feeds as one of the most crucial public goods in the ecosystem right now. Given any oracle or price feed solution, regardless of its degree of decentralization, it can always introduce a single point of failure. As soon as many players are relying on an oracle or price feed and the stakes are high enough, the incentives exist for it to be attacked, and for the relaying protocols to be taken advantage of.

At the end of the day, when projects decide to use a 3rd party oracle, they are basically outsourcing one key part of their system — and namely one that is crucial for their security, liveness, viability and reputation. This is an often overlooked issue, and one that can come back to bite us anytime.

Ever since we started designing the Witnet decentralized oracle back in 2017, we had this vision of giving developers “the oracle that Ethereum deserves”. That is, a set of oracle solutions that lives up to the decentralization and censorship resistance properties that Ethereum itself offers. In other words, helping the Ethereum and Web3 ecosystem to reduce the systemic risk that oracle solutions can introduce if they are not designed and executed properly.

In this fight against systemic risk, we believe that, beyond fostering specific oracle solutions, we need to take a step forward and work side by side with the BUIDLers and projects out there to help them assess and improve their policies regarding oracles, price feeds and decentralization in general.

Also in that same spirit of cooperation for the good of the ecosystem, we partenered with Tellor, Band, Razor and others in creating the Alliance of Decentralized Oracles, an informal work group that is already working on an EIP proposing a standard interface for price feeds. This unified interface aims to make the developers’ life easier by enabling them to use one oracle solution or another in a plug-and-play manner. This also makes it super easy to create price feed contracts that aggregate data from multiple oracle solutions and leverage on their different designs. If you want to hack those, you need to hack several oracles with radically different security models.

As strong supporters of decentralization and DAOs, blending ourselves into other communities is our preferred way of collaboration — and actually the only one that makes sense for us.

Because of all of this, Witnet Foundation is applying to join the Aave Risk DAO. We are obviously most interested in the oracle risk chapter, but we are also ready to put into value the rich know-how in other areas of our cross-functional team.

In practice, Witnet Foundation can commit to the following meaningful contributions:

  • Reports and documentation on the current oracle policy of the Aave protocol, paying special attention to identifying and evaluating the risks to mitigate and any theoretic attack vectors.
  • Proposals on how to improve the current oracle policy, including the general strategy, as well as the business logic of the Price Oracle contract, the fallback oracle system, and the individual price feeds that power each of the supported assets.
  • Research and analysis on the performance of the existing price feeds, both from objective metrics and from a subjective “compared to expectations” point of view.
  • Assessment, documentation, recommendations, and participation in discussions about the oracle risk, trust model and security considerations of specific ARCs and AIPs, including those proposing addition of new assets, and those proposing technical changes or upgrades.
  • Review of price feeds and their quality, sustainability and suitability for ARCs and AIPs proposing addition of new assets.
  • Design and implementation of additional price feeds contracts so as to increase the diversity of data sources available for existing and future assets on Aave.
  • Fostering the involvement of other members of the Alliance of Decentralized Oracles in relevant oracle-related discussions.
  • Technical due diligence of projects, assets and proposals.
  • Review, auditing and documentation of smart contracts security and trust models, both for the Aave code base, the contracts of existing and proposed assets, and 3rd party protocols and dApps that may integrate with Aave behind the curtains.
  • Elaboration and cooperation on the creation of risk mitigation proposals to the governance forum on behalf of the RiskDAO.
  • Participation and cooperation with other members of the RiskDAO on the improvement of the RiskDAO’s own governance processes.

As an organization, we do not see any problem in jointly committing up to 8 or 10 hours a week. Many of us are really looking forward to getting involved as we come from a strong tradition of supporters of libre software, and we are always happy to contribute to other projects, give back to the ecosystem, and create closer ties with other hackers and communities.

Aave is obviously one of the most respected projects in the space. For us, joining the RiskDAO and having the opportunity to cooperate with the whole Aave community in strengthening the security of the platform is a one-in-a-lifetime opportunity to lead by example and raise the bar of trustlessness and decentralization for the whole ecosystem. Let’s do it together!

3 Likes

Bump. Any update on the timelines for seeing this sent to Snapshot/AIP?

1 Like

I find the approach of a Risk DAO really interesting and want be part of this opportunity to move the protocol, the DeFi sector in general and Crypto Risk Management to the next level by organizing the risk identification, analysis, assessment and mitigation in a decentralized and novel manner.

Involvement
I’ve read Aave’s Risk Framework on GitBook and found it really professional and well outlined. Moreover, the detailed analysis of financial risks of Gauntlet has caught my interest. At my current position as a Risk Manager I assess different DeFi protocols and tokens based on a rigorous assessment procedure considering their whole risk spectrum of technical, governance, economic and systemic as well as legal and regulatory risks.

Skills / experience
I’m happy to contribute the following experiences and skills to the Risk DAO:

  • more than 8 years in Risk Management for international financial institutions and fintech’s

  • more than 3 years in crypto / blockchain risk and developing a comprehensive Blockchain Risk Framework for a bank

  • Financial Risk (Market, Credit, IRR, ALM)
  • Operational Risk (incl. IT, Governance, Custody)
  • Regulatory and Legal Risk (i.e. Token Classification) on international and EU level as well as Switzerland (Basel Framework (i.e. Basel III, IV), European Commission (MiCA), EBA, FINMA (CH))
  • DeFi Protocol and Token Risk Assessment
  • Programming: SQL, Python, Solidity (basics)
  • Supervised (LR, SVM, Decision Trees) / unsupervised ML: Keras, scikit-learn
  • Data Science: pandas, matplotlib, seaborn, plotly, PowerBI
  • Medium articles: https://crypto-risk.medium.com/
  • LinkedIn profile: https://www.linkedin.com/in/fabian-breu/

Commitment
I would be very happy to join the Risk DAO and contribute up to 10 hours per week.

2 Likes

Hi all,

It’s been a while since last posting updates here, but we’re now ready to move forward with risk dao proposal. I’m sharing the proposal text below, and will put up a Snapshot poll tomorrow to gauge community sentiment on the proposal before putting up an on chain governance vote. Any feedback or comments from the community are welcomed and appreciated!

A note for prospective contributors - we reached a decent initial budget based on contributors who engaged with the process beginning earlier this summer, so I was not able to engage with everyone who expressed interest in contributing to risk DAO in this initial proposal. Once we get the organization up and running, I think they may be scope to onboard additional members as needed in future renewals. My sincere apologies to anyone who was not able to be included in initial scope of this proposal, I look forward to continuing to work together for the benefit of the Aave protocol and community :slight_smile: I also think strategically it makes sense to onboard individual contributors to a core risk DAO organization before considering engagement with outside organizations and service providers.


Simple Summary

A proposal to fund the Aave Risk DAO, an organization of contributors dedicated to risk analysis for the Aave protocol.

Abstract

The Aave Risk DAO will provide professional, committed risk analysis to support the Aave protocol and community. Key focus areas include asset onboarding, additional money markets, new risk management features, and supporting community initiatives.

Motivation

The Aave protocol is evolving rapidly with new features, integrations, assets, and markets. Aave users and token holders rely on the protocol to operate securely and safeguard the funds deposited in Aave markets and the safety module. Committed professional analysis will help governance and the community mitigate risk and take advantage of new opportunities with greater confidence.

The Risk DAO will initially focus on the following areas:

  • Reviewing proposed new assets for technical and market risks
  • Facilitating community discussions through biweekly risk calls
  • Building dashboards and tooling to help increase understanding of Aave protocol risk factors
  • Evaluating markets for cross chain deployments or new asset types
  • Commenting on community led initiatives that affect protocol risk

Refer to the Aave governance forum post for additional details on Risk DAO scope and priorities.

The Risk DAO will seek to work collaboratively with Gauntlet Network, which recently received approval for dynamic risk parameter management of the primary Aave v2 money market on Ethereum mainnet. Gauntlet’s engagement will allow the Risk DAO to focus on other important priorities for Aave risk management. We will remain open to opportunities for collaboration with Gauntlet and other Aave contributors including the Aave Grants DAO.

Implementation

The Aave Risk DAO will be funded for an initial operating period of 3 months (12 weeks). At the conclusion of this period, the community can review performance and determine next steps for extending the program.

Initial contributors:

Project management and governance

  • monet-supply

Market risk and analytics

  • Thomas
  • Jack
  • Roberto
  • Jeremy

Technical risk

  • Mateusz

Real world asset risk

  • Will

Student contributors

  • Members of Blockchain at Berkeley

Members will post short introductions below. Additional contributors may be onboarded to the Risk DAO as needed with mutual agreement of existing members, with any new contributors providing introduction details and falling under the existing Risk DAO budget outlined below. Budget changes will require consent of Aave governance.

Budget

Contributor Payments

Technical Risk - 10 hours per week at $225/hour
Market Risk and Analytics - 30 hours per week at $200/hour
Real World Asset Risk - 10 hours per week at $225/hour
Project Management and Governance - 10 hours per week at $100/hour
Student Contributors - 15 hours per week at $100/hour

Total: $156,000 over 3 months ($13,000 per week)

Miscellaneous Expenses

This budget category includes spending on software, infrastructure, and other miscellaneous expenses. The Risk DAO will submit an invoice detailing itemized costs and descriptions for any miscellaneous expenses on a monthly basis.

Total: $30,000 over 3 months

Grand total: $186,000 over 3 months

Payout Mechanism

We will establish a multisig wallet to hold operational funding for the Aave Risk DAO. The multisig will require 4 of 6 signers to move funds or take other action. The proposed signers are listed below:

Monetsupply (Risk DAO contributor)
Tom Borgers (Risk DAO contributor)
Jack Clancy (Risk DAO contributor)
Nick Cannon (Gauntlet)
John Morrow (Gauntlet)
1 additional Aave community member not affiliated with Risk DAO (TBD)

Due to potential price volatility between proposal submission and final approval, the Risk DAO is requesting $204,600 worth of AAVE tokens (final amount of tokens to be determined based on AAVE price when on-chain proposal is submitted), representing a 10% surplus buffer over the stated budget. Funds will be converted by the multisig to stablecoins (DAI or USDC) when received, to minimize volatility and avoid funding shortfalls.

Each month, the multisig will transfer payments to Risk DAO contributors for the upcoming month. In addition, the multisig will transfer reimbursements for any miscellaneous expenses incurred over the previous month.

At the conclusion of the 3 month period, the multisig will return any unused funds to Aave governance. Additionally, Aave governance may request early termination of the Risk DAO and return of funds via the AIP process.

Risk DAO contributors who are reconfirmed for a new term of membership at the end of this period should be eligible for a 10% bonus paid in AAVE tokens, calculated based on their total compensation earned over the 3 month initial period covered by this proposal. This bonus payment is contingent on renewal by Aave governance, so the necessary funds would be requested in a future proposal.

Proposal transaction(s):

Transfer $204,600 worth of AAVE tokens from ecosystem reserve to the Risk DAO multisig

Copyright

Copyright and related rights waived via CC0.

9 Likes

Risk DAO Member Information - monetsupply

Aave forum account: @monet-supply
Discord / telegram / twitter / other contact info: MonetSupply

Primary focus area: Governance and Project Management

Personal statement:

I have a background in the traditional consumer lending industry, and have been involved in the defi and DAO space since early 2020. I gained experience with defi lending and risk management working with MakerDAO’s risk team over the past year.

I’m excited for the opportunity to help launch the Aave Risk DAO! Building up risk analysis capacity within the Aave community will help the protocol continue to advance and iterate rapidly while maintaining safety for users.

Conflicts of interest disclosures:

I’m currently working with MakerDAO’s risk core unit, and Tally. I’m a governance delegate in a few other protocols including Compound, and participate in other protocols on an ad hoc basis. I hold investments in a range of crypto assets (majority held in my public ENS account), some of which may offer competing services to Aave (eg. COMP, MKR, RGT) or may be seeking integration with Aave (eg. LDO).

6 Likes

Risk DAO Member Information - Jeremy Keating
Aave forum account: @JeremyKeating
LinkedIn: jeremy-keating
Primary focus area: Market Risk

Personal statement:
I am an actuary with over ten year’s experience and am currently studying a masters in Blockchain with the University of Barcelona. I am also a skilled programmer and data scientist. One key focus in my career has been finding the correct price for risks and risk transfers and understanding the nature of future cash flow and profitability both in terms of expectation and probabilistic distribution.
I am very thankful for the opportunity to contribute to Aave and add value.

Conflicts of interest disclosures:
I am a freelance consultant and have multiple clients some of which may offer financial services similar to Aave.

4 Likes

Risk DAO Member Information - Mateusz Khalil
Aave forum account: @mate
Twitter: @1ultimat3
LinkedIn: mateusz-khalil
Primary focus area: Technical Risk

Personal statement:
I have conducted smart contract security audits and security consultation work since early 2018 - mainly in the Ethereum ecosystem. Being employed in the traditional information security field as a senior IT auditor for almost 8 years, I have also contributed to the information security community (e.g. Black Hat USA).
My objective is to perform deep technical analysis to identify risks and contribute to the Risk DAO.

Conflicts of interest disclosures:
I am an active contributor and risk assessor in the Nexus Mutual community, where some of the work has been incentivized. I have no conflicts of interest with respect to contracts or investments.

4 Likes

Risk DAO Member Information - Jack Clancy

Aave forum account: 0xjack
Twitter: jack_clancy93

Primary focus area: Market Risk

Personal statement:

I’ve been working in the crypto DeFi space for almost 4 years now. Primarily at Consensys but have also done work with Sushiswap, Nexus Mutual and Radar Relay/0x. Risk in DeFi has been an interest of mine for a long time. I created the initial version of Consensys’ DeFi Score in late 2019.

I’m passionate about DeFi, risk and Aave and am excited to help contribute to risk analysis at Aave Risk DAO

Conflicts of interest disclosures:

I am an employee of Consensys. I also occasionally do unpaid/paid work for other DeFi protocols that I’m passionate about (listed above). I hold a variety of crypto assets, some of which may offer competing services to Aave (COMP, Sushi, MKR).

6 Likes

Risk DAO Member Information - Tom Borgers

Aave forum account: @bombtorgers
Twitter: thomasborgers

Primary focus area: Market Risk

Personal statement:

I have worked professionally in the crypto space for four years, primarily at ConsenSys as a Director in the Corporate Development and Strategy team. At ConsenSys, I worked closely with our product, sales, marketing, and finance teams on internal strategy and operations as well as market-facing strategy, partnerships, acquisitions, and fundraising. I have also been writing about and investing in crypto for 5+ years, and have worked on economic research for the launch of Eth2.0’s Proof of Stake system. I’m passionate about DeFi and have long been interested in creating better measures of risk within the DeFi space

Conflicts of interest disclosures:

I am currently on a sabbatical from ConsenSys. I am also invested in various crypto assets, including AAVE as well as potentially competitive platforms (e.g. MKR).

5 Likes

Proposal is up on snapshot here - voting starts tomorrow, all AAVE holders are encouraged to participate!

4 Likes

Risk DAO Member Information - Roberto Talamas

Aave forum account: @RobertoTalamas
Twitter/Telegram: @RobertoTalamas
Primary focus area: Market Risk

Personal statement:
I am a full time researcher at Messari focusing on DeFi and macro valuations. Previously, I worked at BlackRock as a lead Risk Manager covering investment risk for Multi-Asset portfolios. Additionally, I spent my last year at the firm working for the internal systematic fixed income hedge fund building high-performance Python tooling for investment research.

I am thankful for the opportunity to be part of the Risk DAO and very excited to help establish a robust risk management process for Aave.

Conflicts of interest disclosures:
I am a full time employee at Messari. In addition, I hold personal investments in AAVE and competing protocols (Compound and MakerDAO)

4 Likes

Risk DAO Member Information - Callam Ingram representing Blockchain@Berkeley.

Aave forum account: @CallamIngram
Discord / telegram / twitter / other contact info: Twitter : @ZukotheDunkman, TG: @ @CallamIngram

Primary focus area: Governance and Project Management

Personal Statement:
Hi, I am a Computer Science at Blockchain@Berkeley and I have been involved in the DeFi space since 2020. I will be spearheading our clubs’ contribution to the Risk DAO but our contribution will be coming from all the members of our governance team. We have a wide range of skills and have already done simulations for assessing risks on the Maker Protocol, specifically the ‘Black Thursday’ crash. (see our StableSims project)

Conflicts of interest disclosures:

Aside from Aave, we have been also delegated voting power across other DAOs such as Uniswap, Compound, and Fei. We are also DeFi loving Degens so it’s likely each member has personal holdings in a variety of different crypto assets but we are also all broke college students so it is safe to assume that each holding is quite small relative to the reputational and future earnings loss we would face by acting corruptly.

5 Likes

I would love to participate!

I am a finance student in the last year of my Master’s degree.

Currently I am pursuing a Double Degree in Germany in “International Finance” and in “Banking and Financial Markets” in Italy. Additionally I am participating in the training to be a licensed derivatives trader with the German Stock Exchange.

During my studies I’ve specialised on Risk Management which I practice on a daily basis by assisting two professors in their writing on “Quantitative Risk Management in the banking and insurance sector” and “Risk Management in large corporations”.
But my real passion lies in crypto.
I joined in 2017 and have never stopped since. In 2018 I wrote my Bachelor’s thesis as an introduction to Bitcoin, to bring this space to more people. Currently I am working on a crypto fundamentals dashboard, which aims to value or compare projects based on a more traditional approach.

I can commit 10h per week.
Please let me know if you need any additional information.

Hey,

I’m working on the tool for protocol analysis, which could become handy for the purposes of RiskDAO, in the vein of what Gauntlet is doing, but based on a set of DeFi-native premises:

  1. Gauntlet is running their simulations with agent-based models representing users interacting with a protocol. A model of a user is based on a set of theoretical assumptions about user behaviour patterns. This approach was developed for TradFi, where the bulk of real life data is either not digitised at all (much of the b2c interaction happens offline) or isn’t available (much of market data is private). Hence, agent-based modelling with theoretical assumptions about incomplete data is justifiable. However, for DeFi agent-based modelling is a suboptimal legacy framework. Since all data about transactions and user interactions with the protocol is open and available for modelling, we can learn from real life data a model of a living protocol, or parts of it, and models of user interactions with it. Moreover, this model will be continuously fine-tuned with new data emerging.
  2. Transactions model is only half of the story. The other half is community sentiment manifested on twitter, discord and discourse. In offline economy inflation expectations and consumer sentiment influence consumer behaviour and central banks of the world when modelling national economies gauge it with polls. In DeFi we have the luxury to model community sentiment not with approximating polls, but again with real life data, while constantly fine-tuning the model.

We can learn from real life data models of onchain activity & of community sentiment and then merge them to get a true-to-life DeFi-native model of a protocol, which can be constantly fine-tune. Then it can be used to build tools for explorable + explainable DeFi: running stress tests and alternative scenarios, classifying protocols and tokens, detecting user behaviour patterns, making forecasts about certain protocol KPIs like TVL and that of partnering protocols.

The first example of the community model application is the gauge of Twitter sentiment evolution towards AAVE proto (256k tweets over the period Nov '19 - Oct '21)

As you can see from the intensification of fluctuations real interest skyrockets with the start of DeFi summer (239k out of 256k tweets over the period Jun '20 - Oct '21). If you zoom in, you see details better.

An autoencoding BERT derivative language model trained on the corpus of tweets, then fine-tuned on a different corpus of tweets with sentiment labeled by human annotators, then Twitter feed scrapped with inclusion/exclusion @ # $ and some others for a particular protocol. Then run scrapped Twitter feed through language model, then for each data point in the time series calculate rolling mean with a heuristic window (a sweet spot: less – too much noise, more – too little details).

Just dm me to explore cooperation.

More here: I gauged Twitter sentiment evolution towards some key DeFi protocols - Tribe

4 Likes

Hi @pavel
Welcome to the community. This does look really interesting and very clever
I will DM and we can discuss some more
J

1 Like

Hi Team,

Excellent idea, would love to participate.

I’m the Head of Risk Solutions at Credmark, the DeFi data and risk analytics platform.

Here is my LinkedIn page: https://www.linkedin.com/in/atulemis

Look forward to connecting with you.

Regards,
Asan